Magic 3.1 chip stopped working

I sent my V4 ps2 away in April along with an authentic Magic 3.1 modchip to be installed. It worked great until I noticed about 2 or 3 months ago, it took 2 or 3 tries to boot a backup copy of any game (on failures it would say unable to read disc, or insert ps1 or ps2 disc). Then about a month ago, it started to take up to 20 tries to get a game to start, (failures same as before). Now, backup copies wont boot at ALL. The only message it comes up with now is the red "insert a ps1 or ps2 disc."
When i put in a backup copy, it makes a kind of, squealy, high pitched bubbly sound when it starts to read the disc.
I dont know if this is important but, i also noticed that my red analog light on the controller turns off when the Ps2 sony screen appears after turning on the ps2.

Is there any way i can rememdy this?
I'm open to any last resort suggestions as well...i'm so frustrated that i'm about to just unload $270 for a brand new premodded ps2.